Segment and Geographic Information

12 Months Ended

Mar. 31, 2013

Segment and Geographic Information

Segment and Geographic Information

Note 9: Segment and Geographic Information

        The Company is organized into three business groups: Tantalum, Ceramic, and Film and Electrolytic based primarily on product lines. Each business group is responsible for the operations of certain manufacturing sites as well as all related research and development efforts. In fiscal year 2013, the Company did not allocate indirect Selling, general and administrative ("SG&A") and Research and Development ("R&D") expenses to be consistent with its management reporting. Prior period information has been reclassified to conform to current year presentation. Substantially all research and development expenses are direct costs to the respective business group.

Tantalum

        Tantalum operates in eight manufacturing sites in Portugal, Mexico, China and the United States and produces tantalum and aluminum polymer capacitors which are sold globally and produces tantalum powder used in the production of tantalum capacitors. Tantalum shares with Ceramic the Company's product innovation center in the United States.

Ceramic

        Ceramic operates in two manufacturing locations in Mexico and produces ceramic capacitors which are sold globally. Ceramic shares with Tantalum the Company's product innovation center in the United States In addition, Ceramic maintains a design and manufacturing plant for electrical transformers, inductors, chokes and filters in the United States.

Film and Electrolytic

        Film and Electrolytic operates fourteen manufacturing sites throughout Europe, Asia, Mexico and the United States and produces film, paper, and electrolytic capacitors which are sold globally. Film and Electrolytic also operates a machinery division located in Italy that provides automation solutions for the manufacture, processing and assembly of metalized films, film/foil and electrolytic capacitors; and designs, assembles and installs automation solutions for the production of energy storage devices. In addition, this business group has product innovation centers in the United Kingdom, Italy, Germany and Sweden.

        The following tables summarize information about each segment's net sales, operating income (loss), depreciation and amortization, capitalized expenditures and total assets (amounts in thousands):

	Fiscal Years Ended March 31,
	2013			2012			2011
Net sales:
Tantalum	$	412,791		$	416,995		$	486,595
Ceramic		209,514			213,767			210,509
Film and Electrolytic.		220,649			354,071			321,384
	$	842,954		$	984,833		$	1,018,488
Operating income (loss)(1)(2)(3):
Tantalum	$	41,573		$	52,508		$	134,363
Ceramic		53,149			59,261			61,732
Film and Electrolytic		(35,311	)		22,065			29,702
Corporate		(98,693	)		(96,033	)		(96,536	)
Consolidated operating income (loss)	$	(39,282	)	$	37,801		$	129,261
Depreciation and amortization:
Tantalum	$	21,154		$	21,537		$	29,307
Ceramic		6,253			6,402			7,735
Film and Electrolytic		13,761			12,121			11,831
Corporate		4,391			4,064			4,059
	$	45,559		$	44,124		$	52,932
Capital expenditures:
Tantalum	$	13,669		$	12,357		$	8,962
Ceramic		3,169			6,682			4,764
Film and Electrolytic		23,970			21,539			16,445
Corporate		5,366			8,736			4,818
	$	46,174		$	49,314		$	34,989

(1)

Restructuring charges included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2013		2012		2011
Total restructuring:
Tantalum	$	3,979	$	950	$	864
Ceramic		3,356		211		444
Film and Electrolytic.		9,621		13,093		5,863
Restructuring charges		1,763		—		—
	$	18,719	$	14,254	$	7,171

(2)

Impairment charges and write downs included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2013		2012		2011
Impairment and write down of long-lived assets:
Tantalum	$	3,348	$	15,786	$	—
Film and Electrolytic		5,326		—		—
	$	8,674	$	15,786	$	—

(3)

(Gain) loss on sales and disposals of assets included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2013			2012			2011
(Gain) loss on sales and disposals of assets:
Tantalum	$	(187	)	$	269		$	25
Ceramic		26			69			(1,578	)
Film and Electrolytic		179			(20	)		292
	$	18		$	318		$	(1,261	)

	March 31,
	2013		2012
Total assets:
Tantalum	$	404,333	$	512,640
Ceramic		145,793		202,713
Film and Electrolytic.		361,465		265,509
	$	911,591	$	980,862

        The following highlights net sales by geographic location (amounts in thousands):

	Fiscal Years Ended March 31,(1)
	2013		2012		2011
United States	$	230,917	$	237,472	$	240,775
Hong Kong		148,447		147,054		171,129
Germany		106,168		143,119		131,107
Europe(2)(3)		90,220		137,562		157,348
China		74,506		104,524		114,879
United Kingdom		34,188		39,512		34,321
Singapore		25,120		33,633		37,118
Italy		21,762		32,512		39,525
Asia Pacific(2)(3)		67,542		49,406		58,581
Netherlands		24,570		19,455		20,426
Other countries(2)		19,514		40,584		13,279
	$	842,954	$	984,833	$	1,018,488

(1)

Revenues are attributed to countries or regions based on the location of the customer. The Company sold $127.7 million, $125.3 million and $133.3 million in fiscal years 2013, 2012 and 2011, respectively, to one customer, TTI, Inc. Tantalum sales to TTI, Inc. were $73.2 million, $68.0 million and $81.3 million in fiscal years 2013, 2012 and 2011, respectively. Ceramic sales to TTI, Inc. were $45.8 million, $44.3 million and $44.2 million in fiscal years 2013, 2012 and 2011, respectively. Film and Electrolytic sales to TTI, Inc. were $8.7 million, $13.0 million and $7.8 million in fiscal years 2013, 2012 and 2011, respectively.

(2)

No country included in this caption exceeded 2% of consolidated net sales for fiscal years 2013, 2012 and 2011.

(3)

Excluding the specific countries listed in this table.

        The following geographic information includes Property, plant and equipment, Goodwill, Intangible assets, net, based on physical location (amounts in thousands):

	March 31,
	2013		2012
United States	$	136,794	$	146,876
Mexico		69,870		65,255
Italy		56,899		58,976
China		33,873		40,415
Portugal		28,716		35,971
Macedonia		18,724		7,757
Indonesia		7,243		7,979
Finland		6,992		7,904
United Kingdom		5,246		7,393
Other		14,381		15,525
	$	378,738	$	394,051